Certificate of Deposit Account Registry Service
The Certificate of Deposit Account Registry Service is a financial service for FDIC-insured depository institutions. US banks use CDARS to ensure that large customer deposits are covered by the FDIC deposit insurance fund even for amounts greater than the standard FDIC insurance maximum of $250,000. This is accomplished by placing the funds with CDARS which then distributes them among a network of over 3000 participating banks across the United States. Depositors are able to deal with a single bank that participates in CDARS yet avoid having funds above the Federal Deposit Insurance Corporation deposit insurance limits in any one bank.
Both retail and commercial banks are members of the CDARS network.
How it works
The service can place multiple millions of dollars in deposits per customer and make all of it qualify for FDIC insurance coverage.The FDIC has confirmed that deposits placed through deposit placement service offered by the IntraFi Network are eligible for “pass-through” FDIC insurance. The FDIC strongly recommends that every depositor “protect all deposits with FDIC insurance.” The FDIC does not recommend any particular approach to doing this. CDARS and IntraFi are for-profit organizations. They are not endorsed by or affiliated with any governmental agency.